CURRENT REPORT FOR ISSUERS SUBJECT TO THE
                         1934 ACT REPORTING REQUIREMENTS

                                   FORM 10-KSB

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549


  Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act

                   For the Fiscal Year Ended December 31, 2003

                            HERITAGE MANAGEMENT, INC.
             (Exact name of registrant as specified in its charter)

         Nevada                       333-106955               75-2877108
(State or other jurisdiction    (Commission File Number)    (IRS Employer
 of incorporation)                                           Identification No.)

                 1529 East I-30, Suite 104, Garland, Texas 75043
               (Address of principal executive offices (zip code))

                                  972-303-0907
              (Registrant's telephone number, including area code)



                                (Former address)

Securities registered pursuant to Section 12(b) of the Act:  NONE
Securities registered pursuant to Section 12(g) of the Act:  NONE

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by  Section  13 or 15(d) of the  Securities  Act of 1934  during the
past12 months and (2) has been subject to such filing  requirement  for the past
90 days.
                   YES    X  NO
               ----      ----

Aggregate  market  value  of the  voting  stock  held by  non-affiliates  of the
registrant as of December 31, 2003:  -0-

Shares of common stock outstanding at December 31, 2003:  3,350,000






<PAGE>


PART I.

ITEM 1.  DESCRIPTION OF BUSINESS

We are an  independent  mortgage  banking  company  that is in the  business  of
soliciting, processing and brokering the funding for residential mortgage loans.
We have five  salesmen who work for us on a  subcontract  basis who will solicit
mortgage loan applications  through personal contact with realtors,  real estate
marketing entities and other  organizations they may belong to. Once the loan is
solicited and an application  received, we will process the loan. Processing the
loan entails  gathering all the necessary  paperwork in order to submit the loan
package (one loan) to an investor/underwiter for funding approval. Once the loan
is approved,  the applicant  (home buyer) is notified and a closing date is set.
This whole process is sometimes referred to as `originating' a loan.

ITEM 2.  DESCRIPTION OF PROPERTY

During 2003,  the  Company's  corporate  offices were located at 1529 East I-30,
Suite 104,  Garland,  Texas 75043.  The Company rented these corporate  offices,
consisting of approximately 800 square feet, pursuant to a verbal month to month
lease for $400 per month.

ITEM 3.  LEGAL PROCEEDINGS

The company is not involved in any legal proceedings.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

The Company did not submit any matters to a vote to the security  holders during
2003.







<PAGE>


PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
         STOCKHOLDERS MATTERS

The Common Stock is not currently quoted on the OTC Bulletin Board.

Shareholders

As of December 31, 2003,  there were 3 record  holders of the Common  Stock.  In
April 2004, as of the date of this filing, the number of shareholders  increased
to  approximately  75 in  connection  with the  raising of funds  under the SB-1
registration statement that became effective on February 12, 2004.

Dividends

The  Company has not paid cash  dividends  on any class of common  equity  since
formation  and the  Company  does not  anticipate  paying any  dividends  on its
outstanding common stock in the foreseeable future.

Warrants

The Company has no warrants outstanding.

ITEM 6.  MANAGEMENT DISCUSSIONS AND ANALYSIS OR PLAN OF OPERATION

SUMMARY OF 2003

We are an  independent  mortgage  banking  company  that is in the  business  of
soliciting, processing and brokering the funding for residential mortgage loans.
In 2003 we saw interest rates hit record lows and then start to fluctuate mildly
up and then down again.  This  provided a good  environment  for our business as
home sales  remained  strong and  therefore  people  continued to seek loans for
their financing of those purchases. In addition, as often happens when rates dip
significantly, many new mortgage companies are formed in order to take advantage
of the quick and easy  money  offered by those  refinancing  their  higher  rate
mortgages.  Since we have seen the stabilizing of the rates, and not many people
are left to refinance, the mortgage companies formed to solicit these easy loans
will  gradually  close  and  then  the  mortgage  market  will  be  left  to the
established  and more serious  mortgage  companies.  We are one of those serious
companies.

Year Ended December 31, 2003 Compared to the Year Ended December 31, 2002

Net  revenues  for the year ended  December  31,  2003  decreased  by $31,859 to
$187,304 from $219,163 for the corresponding period of the prior year.

Total  expenses  for the year ended  December  31, 2003  decreased by $54,604 to
$162,469  from  $217,073  for the  corresponding  period of the prior year.  The
decrease is mostly  attributable  to the reduction in consulting fees which were
one time fees paid in 2002 and a decrease in advertising expenses.



<PAGE>


Net income for the year ended  December 31, 2003 increased by $20,587 to $23,282
from $2,695 for the corresponding period of the prior year.

In 2003, we filed a Form SB-1 registration  statement with the U.S. Securities &
Exchange  Commission under which we proposed to raise a minimum of $60,000 and a
maximum  of  $500,000.  This was filed in order to raise  capital  to expand our
business.

Subsequent Events

On February 12, 2004, our Form SB-1  registration  statement filed with the U.S.
Securities & Exchange  Commission  became  effective  under which we can raise a
minimum of $60,000 and a maximum of $500,000,  selling common stock at $0.25 per
share. In April 2004, as of the date of this filing,  we had raised at least the
minimum amount.

ITEM 7.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements of the Company, together with the independent auditors'
report thereon of Malone & Bailey,  PLLC appear on pages F-1 through F-8 of this
report.

ITEM 8.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
         ACCOUNTING AND FINANCIAL DISCLOSURES

Malone &  Bailey,  PLLC has been our  auditor  since  inception.  We have had no
disagreements with Malone & Bailey,  PLLC on accounting or financial  disclosure
issues.



ITEM 8A. CONTROLS AND PROCEDURES

(a)      Evaluation of disclosure controls and procedures

         We maintain controls and procedures designed to ensure that information
         required to be  disclosed  in the reports  that we file or submit under
         the Securities Exchange Act of 1934 is recorded, processed,  summarized
         and reported  within the time periods  specified in the rules and forms
         of the Securities and Exchange Commission.  Based upon their evaluation
         of those controls and procedures performed within 90 days of the filing
         date of this  report,  our chief  executive  officer and the  principal
         financial officer concluded that our disclosure controls and procedures
         were adequate.

(b)      Changes in internal controls

         There were no significant  changes in our internal controls or in other
         factors that could  significantly  affect these controls  subsequent to
         the date of the  evaluation  of those  controls by the chief  executive
         officer and principal financial officer.


<PAGE>


PART III.

ITEM 9.  DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT

As of December 31, 2003, and at the present time, the following persons serve as
directors and officers of the Company.

E. Lee Murdock     Chief Executive Officer, President, Chief Financial Officer
                   and Director

Mr. Murdock, a 53 year old native Texan,  formed the company and at this time is
its only officer and director.  He served in the U.S. Army from 1969 to 1971 and
from 1971 to 1974 he attended the Devry Institute of Technology, where he earned
a Bachelors Degree in Electronics Engineering Technology.  From 1975 to 1988, he
worked in computer and service  positions  until 1988 when he co-founded  Golden
Eagle  Filtration  Systems  which was he sold in 1995.  From 1997 to the present
time, he has been the General Manager of Fresh Air, a commercial and residential
environmental  service  company,  as well as starting  and  developing  Heritage
Management,  Inc. Mr.  Murdock's  duties at Fresh Air include the  assigning and
scheduling of work to be done on residential homes.

ITEM 10. EXECUTIVE COMPENSATION

The Company had not paid any executive compensation in 2003.

ITEM 11. SECUIRTY OWNERSHIP OF MANANGEMENT AND BENEFICIAL OWNERS


As of December 31, 2003,  the following  persons are known to the Company to own
5% or more of the Company's Voting Stock:

                                                 AMOUNT               PERCENT
Name and Address                            BENEFICIALLY OWNED*       OF CLASS
----------------

E. Lee Murdock                                  3,000,000              89.55%
1529 East I-30, Suite 104
Garland, Texas 75043

Edie Kamps                                        300,000               8.95%
204 Glenn
Rockwall, Texas 75087

All directors and officers and control
Persons as a group (1 persons)                  3,300,000              98.50%


     *    Unless otherwise indicated such person is the sole beneficial owner of
          the shares set forth opposite his name.


ITEM 12. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

There were no related party transactions in 2003.



<PAGE>



ITEM 13. EXHIBITS, FINANCIAL STATEMENTS AND REPORTS ON FORM 8-K

(a) The following  documents are filed as part of this report:  Included in Part
II, Item 7 of this report:

         Report of Independent Public Accountant

         Balance Sheet as of December 31, 2003

         Statement of Operations for the Twelve Months Ending  December 31, 2003
         and 2002

         Statement of Stockholders Equity for the Twelve Months Ending  December
         31, 2003 and 2002

         Statement of Cash Flows for the Twelve Months Ending December 31, 2003
         and 2002

         Notes to Financial Statements


(b) The company filed no reports on Form 8-Ks in 2003.

(c)      Exhibits

31       Certification

32       Certification  Pursuant to 18 U.S.C.  Section 1350, as adopted pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002 - CEO and CFO


ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

(1) AUDIT FEES
The aggregate fees billed for professional services rendered by Malone & Bailey,
PLLC, for the audit of the registrant's  annual financial  statements and review
of the financial statements included in the registrant's Form 10-QSB or services
that are normally  provided by the  accountant in connection  with statutory and
regulatory filings or engagements for fiscal years 2003 and 2002 were $4,500 and
$2,700, respectively.

(2) AUDIT-RELATED FEES
NONE

(3) TAX FEES
NONE

(4) ALL OTHER FEES
NONE



<PAGE>


(5) AUDIT  COMMITTEE  POLICIES AND PROCEDURES The Company does not have an audit
committee.

(6) If greater than 50 percent, disclose the percentage of hours expended on the
principal accountant's engagement to audit the registrant's financial statements
for the most  recent  fiscal  year that were  attributed  to work  performed  by
persons other than the principal accountant's full-time, permanent employees.

Not applicable.










                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant has duly caused this Annual Report on Form 10-KSB to be signed on its
behalf by the undersigned hereunto duly authorized.


HERITAGE MANAGEMENT, INC.

By:  /s/ E. Lee Murdock
     ------------------
         E. Lee Murdock
         Chief Executive Officer & Chief Financial Officer

Dated:  April 8, 2004




<PAGE>






                          INDEPENDENT AUDITORS' REPORT

To the Board of Directors
  Heritage Management, Inc.
  Rockwall, Texas

We  have  audited  the  accompanying  consolidated  balance  sheet  of  Heritage
Management,  Inc.  as  of  December  31,  2003,  and  the  related  consolidated
statements of operations,  stockholders'  equity, and cash flows for each of the
two  years  then  ended.  These  consolidated   financial   statements  are  the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audit to obtain  reasonable  assurance  about  whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly,  in all  material  respects,  the  consolidated  financial  position  of
Heritage  Management,  Inc.  as of  December  31,  2003,  and the results of its
operations  and its  cash  flows  for  each  of the two  years  then  ended,  in
conformity with accounting principles generally accepted in the United States of
America.


/s/ Malone & Bailey, PLLC
-------------------------
    Malone & Bailey, PLLC
Houston, Texas
www.malone-bailey.com

February 14, 2003




<PAGE>


                            HERITAGE MANAGEMENT, INC.
                           CONSOLIDATED BALANCE SHEET
                                December 31, 2003


                                     ASSETS
Current assets:
  Notes receivable                                                  $    18,121
  Advances                                                               33,299
                                                                    -----------
    Total current assets                                                 51,420

Property and equipment, net                                              26,913

Mortgage note receivable                                                 14,000

    Total assets                                                    $    92,333
                                                                    ===========

                      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued expenses                             $     6,684
  Advances - affiliate                                                    8,004
  Current portion of long-term debt                                       3,160
                                                                    -----------
    Total current liabilities                                            17,848

Long term debt                                                           11,271
                                                                    -----------

    Total liabilities                                                    29,119
                                                                    -----------

Commitments

STOCKHOLDERS' EQUITY:
  Common stock, $.001 par value, 25,000,000 shares authorized,
    3,350,000 shares issued and outstanding                               3,350
Additional paid in capital                                               46,650
Accumulated deficit                                                      13,214
                                                                    -----------
  Total Stockholders' Equity                                             63,214
                                                                    -----------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                          $    92,333
                                                                    ===========





                See accompanying summary of accounting policies
                       and notes to financial statements.
<PAGE>

<TABLE>

<CAPTION>

                            HERITAGE MANAGEMENT, INC.
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                     Years ended December 31, 2003 and 2002


                                                         2003                2002
                                                    ---------------    ---------------
<S>                                                 <C>                <C>

Revenue                                             $      187,304     $      219,163

Operating expenses:
  Consulting                                                 3,250             39,000
  Commissions                                              124,929            142,689
  Processing expense                                            80             22,750
  Office and equipment rent                                  4,178                  -
  Other general and administrative                          30,032             12,634
                                                    --------------     --------------
                                                           162,469            217,073
                                                    --------------     --------------

Income from operations                                      24,835              2,090

Other income (expense):
  Interest income                                            1,000              1,000
  Other expense                                                  -               (395)
                                                    --------------     --------------
                                                             1,000              1,395
                                                    --------------     --------------

Income before provision for income taxes                    25,835              2,695

Provision for income tax                                     2,553                  -
                                                    --------------     --------------

Net income                                          $       23,282     $        2,695
                                                    ==============     ==============

Net income per share:
  Basic and diluted                                 $        0.01      $         0.00
                                                    =============      ==============


Weighted average shares outstanding:
  Basic and diluted                                      3,350,000          3,350,000
                                                    ==============     ==============
</TABLE>





                See accompanying summary of accounting policies
                       and notes to financial statements.

<PAGE>

<TABLE>

<CAPTION>

                            HERITAGE MANAGEMENT, INC.
                 CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
                     Years ended December 31, 2003 and 2002




                                  Common stock             Additional
                             --------------------------     paid in      Retained
                               Shares        Amount         capital      Earnings         Total
                             ------------  ------------   -----------  ------------    ----------
<S>                          <C>           <C>            <C>          <C>             <C>

Balance,
  December 31, 2001             3,350,000  $      3,350   $    46,650  $    (12,763)   $   37,237

Net income                              -             -             -        2,695          2,695
                             ------------  ------------   -----------  ------------    ----------
Balance,
  December 31, 2002             3,350,000         3,350        46,650       (10,068)       39,932

Net income                              -             -             -        23,282        23,282
                             ------------  ------------   -----------  ------------    ----------

Balance,
  December 31, 2003             3,350,000  $      3,350   $    46,650  $     13,214    $   63,214
                             ============  ============   ===========  ============    ==========
</TABLE>












                See accompanying summary of accounting policies
                       and notes to financial statements.

<PAGE>

<TABLE>

<CAPTION>

                            HERITAGE MANAGEMENT, INC.
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                     Years ended December 31, 2003 and 2002

                                                                     2003              2002
                                                                 -------------    -------------
<S>                                                              <C>              <C>

Cash flows from operating activities:
  Net income                                                     $     23,282     $     2,695
    Adjustments to reconcile net loss to cash
      used in operating activities:
        Depreciation                                                    5,537           1,146
Changes in assets and liabilities:
  Notes receivable                                                    (12,748)         (1,000)
  Advances - affiliate                                                       -         (16,401)
  Accounts payable and accrued expenses                                (1,375)         13,165
  Federal income tax payable                                            1,747             395
                                                                 ------------     -----------

Net cash used in operating activities                                  16,443               -
                                                                 ------------     -----------

Cash flows from investing activities:
  Capital expenditures                                                (30,874)              -
                                                                 ------------     -----------

Cash flows from financing activities:
  Proceeds from note payable                                           16,709               -
  Payments on note payable                                             (2,278)              -
                                                                 ------------     -----------
                                                                       14,431               -
                                                                 ------------     -----------

Net increase (decrease) in cash                                             -               -
Cash, beginning of period                                                   -               -
                                                                 ------------     -----------
Cash, end of period                                              $          -     $         -
                                                                 ============     ===========

Supplemental information:
  Income taxes paid                                              $          -     $         -
  Interest paid                                                  $          -     $         -

</TABLE>



                See accompanying summary of accounting policies
                       and notes to financial statements.



<PAGE>



                            HERITAGE MANAGEMENT, INC.
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - SUMMARY OF ACCOUNTING POLICIES

Nature of business. On June 12, 2000 Heritage Management,  Inc. ("Heritage") was
incorporated  under the laws of the State of Nevada,  is  engaged  in  assisting
residential borrowers in obtaining mortgage loans in the state of Texas.

Principles of Consolidation

The December 31, 2003 consolidated  financial statements include the accounts of
Heritage's wholly owned subsidiary.  All significant  intercompany  transactions
and balances have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America requires  management to make
estimates  and  assumptions  that  affect  the  reported  amounts  of assets and
liabilities at the date of the balance  sheet.  Actual results could differ from
those estimates.

Cash and Cash Equivalents

Cash  and  cash  equivalents  include  cash  and  all  highly  liquid  financial
instruments with purchased maturities of three months or less.

Long-Lived Assets

Property and equipment are stated at cost less accumulated  depreciation.  Major
renewals and improvements are capitalized;  minor replacements,  maintenance and
repairs are charged to current operations.  Depreciation is computed by applying
the straight-line  method over the estimated useful lives of equipment (three to
seven years).  Heritage performs reviews for the impairment of long-lived assets
whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable.

Revenue Recognition

Heritage  recognizes revenue when persuasive  evidence of an arrangement exists,
delivery or services have occurred, the sales price is fixed or determinable and
collectibility is probable.

Revenues  earned from  services,  which  primarily  include the  origination  of
residential mortgage loans, are recognized as the loans are closed.


<PAGE>


Income Taxes

Income taxes are computed using the asset and liability method.  Under the asset
and liability method,  deferred income tax assets and liabilities are determined
based on the differences between the financial reporting and tax bases of assets
and liabilities and are measured using the currently enacted tax rates and laws.
A valuation  allowance  is provided  for the amount of deferred tax assets that,
based on available evidence, are not expected to be realized.

Advertising Costs

Advertising costs are charged to operations when incurred.  Advertising expenses
for 2003 and 2002 were $1,350 and $8,220, respectively.

Commissions and Processing Fees

Commissions are those costs paid to the  salespersons  for soliciting  loans and
costs paid for processing  loans.  The payments made for processing are expensed
when incurred since the costs are not dependent on the loan closing. Commissions
are expensed when earned, and amounts advanced that are not earned are reflected
on the financial  statements  in the current asset section as advances.  None of
these amounts were paid to related parties.


Basic Loss Per Share

Basic loss per share has been calculated based on the weighted average number of
shares of common stock outstanding during the period.

Recent Accounting Pronouncements

Heritage   does  not  expect  the   adoption  of  recently   issued   accounting
pronouncements  to  have a  significant  impact  on the  Heritage's  results  of
operations, financial position, or cash flow.


NOTE 2 - NOTE RECEIVABLE

Heritage has a $10,000 unsecured note receivable with an Internet  company,  due
November 16, 2004 and bearing interest at 10%.  Accrued  interest  receivable is
$2,121 as of December 31, 2003.

Heritage has a $6,000  non-interest  bearing  unsecured note  receivable  with a
mortgage loan processing company, due on demand.


NOTE 3 - ADVANCES

Heritage has made commission  advances to a mortgage broker that will be applied
against future commissions.


<PAGE>

<TABLE>

<CAPTION>


NOTE 4 - MORTGAGE NOTE RECEIVABLE

Heritage has a $14,000 mortgage note receivable with an individual, secured by a
second lien on real estate,  due in monthly  installments  through June 1, 2031,
bearing interest at a rate of 10%.


NOTE 5 - INCOME TAXES

The provision (benefit) for federal income tax consists of the following for the
years ended December 31:

                                                                2003                 2002
                                                          ---------------      ---------------
<S>                                                       <C>                  <C>

    Current provision                                     $         2,553      $             -
    Deferred provision                                                  -                    -
                                                          ---------------      ---------------
                                                          $         2,553      $             -
                                                          ===============      ===============

Deferred income taxes consist of the following at December 31:

                                                                2003                 2002
                                                          ---------------      ---------------
    Short-term:
      Deferred tax assets                                 $            -       $             -

    Long-term:
      Deferred tax liability                                           -                     -
      Valuation allowance                                              -                     -
                                                          --------------       ---------------
                                                          $            -       $             -
                                                          ==============       ===============

The  following  is a  reconciliation  of income taxes  calculated  at the United
States federal statutory rate to the income tax provision (benefit):

                                                                 Years ended December 31,
                                                          ------------------------------------
                                                                2003                 2002
                                                          --------------       ---------------
    Provision for income taxes at
      U.S. statutory rate                                           15%                     15%
    Effect of utilization of net operating loss
      Carryforwards                                                 (5)%                   (15)%
                                                          --------------       ---------------
    Income tax provision                                            10%                      0%
                                                          ==============       ===============
</TABLE>

Heritage had taxable income of $25,835 for 2003 and had not yet realized taxable
income for 2002. At December 31, 2002 a deferred tax asset has not been recorded
due to  Heritage's  limited  history to provide  income to use the net operating
loss carryover of $9,000 that expires in years 2020 through 2022.


<PAGE>



NOTE 6 - ADVANCES - AFFILIATE

Certain  expenses were paid by an affiliate of Heritage.  Advances of $8,004 are
unsecured and are due upon demand.


NOTE 7 - LONG-TERM DEBT

In March 2003, Heritage entered into a note payable for an automobile,  interest
rate of 4.34%,  with a maturity date of March 8, 2008.  Future note payments are
as follows:

               2004           $     3,160
               2005                 3,300
               2006                 3,446
               2007                 3,599
               2008                   926
                              -----------
                              $    14,431
                              ===========


NOTE 8 - COMMITMENTS

Heritage leases its office under a month to month agreement.  The lease provides
for monthly payments of rent of $150.

Rent expense was $1,800 for 2003 and 2002, respectively.